Why Chainlink Price Jumps 10%, Will LINK Hit $50?

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As a seasoned crypto investor with more than a decade of experience under my belt, I must say that the recent surge in Chainlink (LINK) price has certainly piqued my interest. Having weathered numerous market cycles and witnessed both bull and bear runs, I can confidently say that this breakout from a multi-year downtrend is a promising development.

In simple terms, Chainlink’s (LINK) price has spiked by more than 10% within the last 24 hours following its stabilization at around $27.81 as a bottom level. As of now, it is being traded close to $29.98. Financial experts predict that LINK could experience further growth and potentially reach $50 in the upcoming weeks.

As someone who has closely followed the cryptocurrency market for several years now, I can confidently say that the recent surge in LINK’s market capitalization is quite impressive. This latest trend appears to be a significant breakout from a prolonged downtrend that lasted multiple years. The strong buying momentum and technical patterns that have emerged during this period suggest a shift in sentiment among investors, which has fueled the rally.

Chainlink Price Breaks Out of a Multi-Year Downtrend

The current surge in Chainlink’s price can be linked to its recent escape from a long-term slump. In Q4 of 2024, the cryptocurrency underwent a significant transformation, moving away from a falling wedge pattern it had been trapped in for some time. During this resurgence, Donald Trump’s World Liberty Finance purchased over $2.3 million worth of LINK tokens, likely due to speculation about a potential partnership with Blackrock, as we previously mentioned.

As a crypto investor, I’ve noticed an exciting development in the performance of Chainlink. According to ZAYKCharts, the surge started when Chainlink’s price broke through resistance levels at $13.50 and $17.50 earlier this year. These once formidable barriers have now transformed into crucial support zones. In the wake of this breakout, Chainlink’s price has picked up momentum, with robust buying activity propelling it higher.

Currently, Chainlink is nearly reaching a significant resistance point around $30.40. Analysts are keeping a keen eye on its price fluctuations to confirm any potential further shifts. If it manages to close convincingly above this threshold, it could lead to more growth opportunities.

Furthermore, Ali, a leading crypto analyst at X, expressed his view that Chainlink might be preparing to surge past $34. He suggested keeping an eye on hourly closes above $30.40 as this could signal the breakout. After passing $30.40, potential resistance areas can be found in the $35–$40 region, with a future aim of reaching $55.39.

Analyst Predict 0ver 460% LINK Price Rally

At the same time, various technical patterns are backing the continuous upward trend (bullish momentum) of Chainlink. As pointed out by crypto analyst ZAYKCharts, two falling wedge patterns have been noticed over a period of three years.

Between 2021 and early 2022, and again from 2022 to late 2024, two distinct patterns took shape for Chainlink’s price trend. These patterns reached their peaks, or bullish breakouts, signifying the termination of Chainlink’s prolonged bearish phase.

Given its ongoing trend, the price of Chainlink may be poised for extended growth. According to analysts from ZAYKCharts, if Chainlink maintains its present pace and surmounts crucial resistance barriers, it could potentially reach $55.39 – a potential surge of 467%.

As an analyst, I’ve observed a significant surge in the price rally of LINK, with Chainlink’s price skyrocketing by an impressive 190% since its breakout. This substantial increase mirrors growing investor enthusiasm and robust market demand. Furthermore, within the past 24 hours, open interest in LINK derivatives has swelled by 13.82%, reaching a staggering $908.70 million.

LINK Price Technical Analysis, Will Bullish Momentum Persist?

On the 4-hour chart for this LINK, the Relative Strength Index (RSI) is climbing above the 50 zone, which suggests continuous bullish energy. Yet, the RSI has lately ventured into the overbought area and currently sits below its signal line at a score of 61.70, suggesting a possible price correction may be imminent soon.

The MACD, which indicates potential for correction, is showing convergence, signaling a decrease in bullish strength. This suggests that a period of consolidation may be approaching according to cryptocurrency analysts, possibly leading to a breakout towards $34.

Furthermore, the candlesticks have repeatedly appeared close to the upper boundary without dipping below the midline, suggesting a robust uptrend for Chainlink’s price. Reinforcing this bullish trend for Chainlink, the Chaikin Money Flow (CMF) is climbing into positive territory, implying an increase in buying pressure, potentially leading to a bullish breakout in the LINK price, moving upward.

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2024-12-14 21:52